Ultium Cells, a US-based joint venture between South Korea’s LG Energy Solution and General Motors (GM), plans to build a second electric vehicle (EV) battery in Tennessee to meet anticipated strong demand growth in North America.
According to reports in South Korea, Ultium Cells plans to spend US$2.3bn on the new plant which will be similar in scope to the EV battery factory it is currently building in Ohio. This is scheduled to be completed next year and will mainly supply batteries for GM EVs.
The two companies were scheduled to make an official announcement on the new investment plan on Friday, according to the report citing company sources.
LG Energy Solution, one of the world’s largest EV battery manufacturers, was spun off from South Korean chemicals giant LG Chem at the end of last year.
Last month it said it planned to spend KRW5trn (US$4.4bn) to expand battery production capacity in the US by 2025, including projects to build at least two new plants. The company already operates its own lithium-ion battery factory in Michigan.
Earlier this month LG Energy Solution settled a long-standing technology infringement dispute with rival South Korean EV battery manufacturer SK Innovation when it was awarded US$2bn in compensation.